Housing shortage builds
Shane Oliver of AMP updated his chart of home construction versus underlying demand.
Perhaps not surprisingly, his calculation of the cumulative undersupply has blazed well past 200,000.
With housing construction mired at around decade lows, and immigration-favouring Labor set to win the election - it's only a matter of time before the shortage blows out to beyond 300,000 dwellings.
Oliver noted:
"...underlying demographic demand (driven by strong population growth) continues to run well ahead of new housing supply (constrained by capacity and cost issues, etc.), and is pushing the accumulated housing shortfall back up towards levels last seen prior to the unit building boom last decade”.
The opposition has proposed a cut to immigration levels, but is now trailing badly in all polls.
Since Labor very much favours a Big Australia approach, the housing shortage is set to get much worse over the next three years.
Rental vacancy rates are already about as low as they will ever go, so the next few years will be characterised by increasing household sizes as tenants jostle for rentals, and a wild rush of first homebuyers as the government introduces a 5 per cent deposit scheme from January.
Practically all first homebuyers able to scrape together a deposit will likely endeavour to buy a first home, driving the market from the ground up next year.
---
P.S. Whenever you’re ready…here are 4 ways I can help you:
1. Download our property buying guide
Download our free property buying guide here.
You can also check out a few of our recent property purchases here.
Get in contact with us today if strategic property investment is your thing.
2. Subscribe to our Top 10 Podcasts for Investors
Listen in to our podcasts
The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.
And our popular Low Rates High Returns Show also remains available on Spotify.
3. Subscribe for my free daily blog
Subscribe for my free daily blog with some 3¾ million hits here.
You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers.
By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.
My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here.
4. Work with me privately
For a limited time you can book in a free diagnosis call with me here, so book in a call today.
